Fannie Mae offers option to save home from foreclosure – “Deed for Lease”

Government-controlled mortgage company Fannie Mae is going to give borrowers on the verge of foreclosure the options of renting their homes for a year. The change announced Thursday could give a temporary break to thousands of homeowners, but critics question whether it will only add to the mushrooming losses at the company, which has received billions in taxpayer money. The new “Deed for Lease” program allows homeowners to transfer title to Fannie Mae and sign a one-year lease, with potential month-to-month extensions after that. It also helps to save money because the lender does not need to complete the often lengthy and time-consuming foreclosure process. Fannie Mae executives said the rental program is designed to help delinquent homeowners who do not qualify for a loan modification, but still want to stay in their home. Click here for more information.

Posted in: Foreclosures, Mortgages